If you’ve ruled out winning the lottery as your chance to become a millionaire, you must have considered real estate investing a viable opportunity.
And if you haven’t, this article will plant the seed.
Real estate data firm PropertyShark took a closer look at how many property owners have made a good profit off of selling their homes since the turn of the century. More specifically, they looked at homes bought before 2001 for less than $1 million, later to be sold by their owner for $1+ million.
They then grouped the data by city, to give us a clear picture of the thriving real estate markets where investing in property can take us one step closer to becoming a millionaire. Here’s how they map out:
The city to land first place is — unsurprisingly — San Francisco, which minted 381 million real estate millionaires as the market skyrocketed in the past two decades. That puts it ahead of Manhattan, which, despite being double the size of San Francisco, only saw 335 people become millionaires off of selling their properties.
A more unexpected finding was that the Los Angeles market lost the third spot in favor of Brooklyn; the New York borough came in on #3, with 281 people making a good profit off of selling their homes for over $1 million.
Trailing closely behind, “the city of Los Angeles, with a population of more than 3.9 million, made 280 people millionaires since the turn of the century,” Robert Demeter reports for PropertyShark, adding that “L.A. isn’t as expensive as some of the neighboring cities in the county, but being spread out with a large number of residents, it’s no surprise it made it so high on our list. Affluent neighborhoods such as Bel-Air, Venice Beach and Brentwood most certainly paved the way for homeowners to become millionaires after selling their properties.”
Other notable markets where people achieved millionaire status by selling their homes are Potomac, MD (182 millionaires), Bethesda, MD (175 millionaires), San Jose, CA (119 millionaires), Queens, NY (93 millionaires), Scottsdale, AZ (86 millionaires), and Plainfield, IL (78 millionaires).
Out of the top 25 “millionaire cities”, 7 are located in the Silicon Valley area, where the median home price regularly goes over the $1 million mark.
It’s worth noting that the study only looked at the profits made off of selling homes in these markets with a sale price over $1 million.
It doesn’t take into account other financial holdings, investments or net worth of these individuals, who may have already been millionaires before selling their homes.
However, it’s a great indicator of markets that are most likely to mint out millionaires after buying local real estate.
A credit union is a nonprofit institution that’s owned by its members. Compared to a traditional bank, a credit union tends to offer more personalized service.
You can turn to a credit union for a variety of financial products, like checking and savings accounts, credit cards, car loans, and mortgages. Some regional and federal credit unions also offer wealth management services and other extras.
A typical credit union only accepts members who live in a specific region or work for an eligible employer. For example, they may require that you’re a resident of Atlanta, Georgia or work as a teacher.
The good news is some credit unions require less and make it easy for just about anyone to join. If you’d like to join a credit union but don’t want to worry about the strict membership requirements at most institutions, you’ve come to the right place.
38 Best Credit Unions Anyone Can Join
There are hundreds of credit unions that anyone can join, but we’ve done the heavy lifting and found the best ones for you. The credit unions below, which are overseen by the National Credit Union Administration (NCUA) may be an option for you, regardless of what you do for a living or where you’re located.
Just keep in mind that you may have to make a donation, join an organization, live in a certain state, or meet some other eligibility requirement. We encourage you to explore this lengthy to list of credit unions anyone can join so you can hone in on the ideal credit union for your unique situation.
1. Alliant Credit Union
Alliant Credit Union made its debut in 1935 to serve the employees of United Airlines. It stands out for it high-interest savings and checking accounts with low minimum opening deposits as well as excellent customer service.
You’ll also receive access to more than 80,000 free ATMs across the U.S. and get reimbursed up to $20 in out-of-network ATM charges per month. Since it only has two brick-and-mortar locations, you should feel comfortable with online banking. If you’d like to join Alliant Credit Union, make a $5 donation to Foster Care to Success.
2. Connexus Credit Union
Connexus Credit Union was founded in 1935 and has a widespread presence in Wisconsin as well as more than 54,000 ATMs across the country. It couldn’t be easier to join the credit union as all you have to do is pay a one-time $5 fee to the Connexus Association, which supports financial education through college scholarships.
As a member, you can open one of its three checking options with high APYs and a traditional savings account or one that’s specifically designed for the holidays.
3. Pentagon Federal Credit Union
Pentagon Federal Credit Union, or PenFed, was founded in 1935 as a credit union for military and civilian government. Today, this Virginia-based credit union has opened it doors to anyone as long as they open a savings account and deposit a minimum of $5. It offers two savings accounts, including the Regular Savings and Premium Online Savings.
In addition, you can find checking accounts, CDs, and money market accounts. Other products include Coverdell Education Savings Certificates, IRAs, credit cards, mortgages, home equity loans, and student loans. Plus, you can enjoy modern perks like mobile check deposits, online bill pay, and instant transfers.
4. First Tech Federal Credit Union
First Tech Federal Credit Union is headquartered in California. The credit union offers many benefits, such as excellent customer service, many branches throughout the U.S. and Puerto Rico, online banking, and mobile banking.
It also has the Dividend Rewards Checking Account, which gives you 1.00% APY on balances below $1,000. You don’t have to live in California to join as long as you donate to a nonprofit called the Financial Fitness Association.
5. Consumers Credit Union
Consumers Credit Union was established in 1951 as a local credit union. Based in Illinois, it’s one of the largest credit unions in the state with over 100,000 members and more than $1.2 billion in assets.
You can join it, even if you don’t live in Illinois. All you have to do is donate the $5 membership free to an affiliated nonprofit. You can open almost all of its accounts online, except for the checking accounts and IRAs. The credit union also offers a high-yield checking account that offers high interest if you meet certain criteria.
6. Langley Federal Credit Union
Langley Federal Credit Union is based in Virginia and made its inception in 1936. At that time, members of the National Advisory Committee for Aeronautics, the predecessor to NASA, chartered the credit union.
Today, Langley offers membership to anyone who pays a fee to support an important cause in Virginia and deposits at least $5 into a savings account. You can choose from a checking account without a monthly fee, a variety of no-fee savings accounts with competitive interest compounds monthly, and Visa Cards with cash back rewards.
7. Lake Michigan Credit Union
Lake Michigan Credit Union made its debut in 1933 by a group of teachers. Headquartered in Grand Rapids, Michigan, it has 51 branches in Michigan and southwest Florida. Since it’s part of the Allpoint ATM network, members can enjoy free access to more than 55,000 free ATM.
To join, donate $5 to the ALS Foundation and deposit $5 into a Member Savings account. Once you do, you can earn perks through the MORE rewards program and redeem them for complimentary checks and free out-of-network ATM transactions.
You may also open the free, no frills Max Checking account. Note that the Member Savings account, which you must open to become a member, requires a minimum daily balance of $300 or you’ll be charged a $5 monthly fee.
8. Lafayette Federal Credit Union
Lafayette Federal Credit Union was founded in 1935 as an alternative to traditional banks. It offers numerous perks, like no minimum balance requirement or monthly maintenance fees, online banking, mobile deposits, free direct deposit, and special discounts.
You can join it if you live, work, worship, or attend school in Washington D.C. If you live outside the D.C. area, you may still become a member as long as you invest in a lifetime Home Ownership Financial Literacy Council (HOFLC) membership for only $10. This nonprofit focuses on helping consumers navigate the path to homeownership.
9. Affinity Plus Federal Credit Union
Affinity Plus Federal Credit Union has 26 branch locations across Minnesota. APFCU offers MyPlus Rewards that gives you points if you keep a certain amount of money in your bank account or use its debit or credit card.
To be eligible to join, all you have to do is donate $25 to the Affinity Plus Foundation and open a basic savings account. If you live and work in Minnesota or have a family member in the state, there are other ways to become a member.
10. Chevron Credit Union
Chevron Credit Union has been around since 1935 and has 19 branches that span six states, including California, Louisiana, Mississippi, Texas, Utah and Virginia. It operates under two brands: Chevron Federal Credit Union and Spectrum Credit Union.
To become a member, join one of its nonprofit partner organizations, such as the Contra Costa County Historical Society. You’ll also need to deposit $25 into a primary savings account and maintain a $25 minimum balance.
Chevron also offers a second chance checking account called New Solutions for those who need help rebuilding their banking history.
11. Ascend Credit Union
Since its inception in 1951, Ascend Credit Union has offered a variety of products, like checking and savings accounts, a money market account, Christmas Club account, youth accounts, credit cards, and loans.
If you’re interested in these services, join The Nature Conservancy, Tennessee Chapter and you’ll be eligible automatically. Note that there is a one-time fee of $25.
12. Hope Credit Union
Hope Credit Union is a black-owned credit union that was organized in 1995 by the Anderson United Methodist Church in Mississippi. You can join if you pay a $10 membership fee and show a foreign passport, permanent resident card, or Matricula Consular. Plus, you may use an ITIN number instead of a Social Security number.
Hope Credit Union provides a number of personal bank accounts, business banking accounts, and transformational deposits. With its transformational deposits, you can participate in socially responsible investing.
13. Boeing Employees Credit Union
Boeing Employees Credit Union, or BECU, was established in 1935 for Boeing employees and currently caters to more than 1 million members. But despite its name, you don’t have to work at Boeing to join.
Its products and services are available to you if you become a member or donor to the KEXP, which is a nonprofit art organization or the Sea Hawkers Central Council. The most noteworthy benefit of joining is the first-time homebuyer grant in which you can receive $7,500 toward your down payment and closing costs.
14. Hiway Credit Union
Hiway Credit Union made its debut in 1931 to serve employees of the Minnesota Department of Transportation. It offers a free checking account with no monthly fee or minimum balance requirements, a free money market account with a $500 minimum deposit, credit cards, and loans.
You can qualify for a Hiway Federal Credit Union membership if you donate to the Minnesota Recreation and Park Foundation for $10 per year or the Association of the U.S. Army, which costs $40 for two years.
15. GreenState Credit Union
GreenState Credit Union was founded in 1938. It provides its members with personal accounts, business accounts, credit cards, loans insurance, wealth management services, and more.
GreenState was named one of the fastest growing credit unions in 2021. As long as you live or work in the state of Iowa, you can become a member and take advantage of its services without any issues.
16. Cascade Credit Union
Cascade Credit Union made its debut in 1952 to serve employees of the Cascade Division of the Great Northern Railway. Today, it’s open to many people and offers great perks like members-only sweepstakes, competitive rates, online banking tools, financial counseling, and group insurance benefits.
If you’d like to join, simply become a member of the Great Northern & Cascade Railway Association (GNCR) and pay an annual membership cost of $40. The credit union can help you fill out your application online or in-person at a local branch.
17. Wildfire Credit Union
Wildfire Credit Union began in 1937 as Saginaw Telephone Employees Credit Union, its original credit union name. Its first location was in the basement of the home of Hank Kosk, the credit union’s treasurer.
After some office upgrades, the credit union opened the doors to its current location on Bay Road in Saginaw and merged with Flint Telephone Employees Credit Union that same year. Today, Wildfire Credit Union offers several deposit accounts as well as personal banking and business banking services. You can join if you live, work, worship, or attend school in Michigan.
18. Nextmark Credit Union
Nextmark Credit Union made its debut in 1958. Its offerings include personal and business checking, home equity loans, personal loans, credit cards, gift cards, and more.
To join, you must live in a qualifying county in Virginia or make a donation to Herndon Elementary PTA, a Title I school.
19. Technology Credit Union
Technology Credit Union, or Tech CU, was established in 1960. It’s based in Silicon Valley and provides its members with no shortage of benefits. These include competitive rates, online banking, access to fee-free ATMs, free credit score monitoring, conference room space, and easy online appointment booking. To become a member, join Financial Fitness Association for only $8.
20. Veridian Credit Union
Veridian Credit Union was established in 1934. Most of its members are those who live or work in Iowa or certain counties of Nebraska. However, it’s open to anyone who is a registered user of Dwolla, a financial technology company. This means you can join as long as you sign up for a personal account at Dwolla.
You’ll also need to open a savings account and deposit at least $5. If you’re already a member of a credit union or bank but would like to switch to Veridian Credit Union, the switch kit may be helpful.
21. Harborstone Credit Union
Harborstone Credit Union’s roots date back to 1955, when it was known as McChord Federal Credit Union and served airmen on the McChord Air Force Base. In 1996, the credit union expanded its membership to anyone in the state of Washington and changed its name as a result.
As long as you live, work, or worship in Washington, you may join Harborstone Credit Union and enjoy a variety of financial products and digital tools.
22. NASA Federal Credit Union
NASA Federal Credit Union began in 1949 to serve NASA employees. Since then, it’s grown to more than 177,000 members. While the credit union is headquartered in Upper Marlboro, Massachusetts, there are 12 branches in Maryland, Virginia, and Washington, DC.
Its product lineup includes a simple checking account with no minimum opening deposit, a savings account with a great rate, and several CDs. You can also monitor your credit score and make deposits with the mobile app. If you don’t work for NASA, you can still join. Simply sign up for a one-year membership at the National Space Society (NSS).
Hanscom Federal Credit Union opened in 1953. The credit union has over 20 branches in and around Boston as well as one in McLean, Virginia. It offers fee-free checking accounts, savings accounts with rewards, credit cards, and loans.
To join, you’ll need to support one of its partner organizations, such as the Burlington Players, a volunteer theater group. In addition, you’ll be required to deposit $25 into a free primary savings account.
24. Pen Air Federal Credit Union
Pen Air Federal Credit Union was founded in 1936 to support civil service employees of Naval Air Station Pensacola. It has 16 locations in northwest Florida and southeast Alabama. You may be surprised to learn that you don’t have to be an active duty or retired military member to join.
You’ll be able to take advantage of Pen Air Federal Credit Union if you become a member of the Friends of the Navy-Marine Corps Relief Society and deposit a minimum of $25 into a savings account. As a member, you can enjoy the Pen Air Platinum Mastercard, Share Savings account with the Round It program, and more.
25. State Department Federal Credit Union
State Department Federal Credit Union was founded in 1935. To join, you can become a member of the American Consumer Council for $8. This is a non-profit organization with a focus on consumer education and financial literacy.
The State Department Credit Union offers a long list of products and services, including basic, advantage, and privilege checking, a money market account, share certificate accounts, individual retirement accounts (IRAs), credit cards, and loans.
26. United Nations Federal Credit Union
United Nations Credit Union made its debut in 1947. As long as you join the United Nations Association of the United States of America, you can become a member.
UNFCU has a vast product lineup that includes a checking account, membership savings account, credit cards, debit cards, and loans, like car loans and debt consolidation loans.
Other membership perks include loyalty rewards, credit card rewards, and the member referral program.
27. Premier Members Credit Union
Premier Members Credit Union was established in 1959 for members of the Boulder Valley School District. You’re eligible to join if you make a donation to Impact on Education, a charity in the Boulder Valley School District, and open an online savings account or youth savings account.
As a member, you can expect perks, such as high interest rates on checking accounts, no monthly service fee, no overdraft fees, and free overdraft protection. The credit union also offers an extensive network of branches and ATMs for your convenience.
28. SRI Federal Credit Union
SRI Federal Credit Union is headquartered in Menlo Park, California. It was founded in 1957 and offers membership to anyone who joins the Financial Fitness Association for $8 per year.
The credit union’s account offerings include a checking and savings account, money market account, IRA, health savings account, and youth, teen, and gradate accounts.
29. United States Senate Federal Credit Union
United States Senate Federal Credit Union has been around since 1935. Its mission is to “improve the financial wellness of members throughout all stages and circumstances of life.” Its products are similar to what most credit unions offer.
As a member, you can enjoy access to a number of checking and credit union savings accounts, mortgage loans, personal loans, auto loans, Visa debit cards, and business advisory services. To join, you’ll need to become a member of the U.S. Capitol Historical Society for $65.
30. Wings Financial Credit Union
Wings Financial Credit Union was founded in 1938 by seven employees from Northwest Airlines. To date, it serves more than 320,000 members with more than $7.5 billion in assets. You can join if you donate $5 to the Wings Financial Foundation, even if you don’t work in the aviation industry.
There are no fees on its basic banking accounts, including its checking and savings accounts, a money market account, and CDs. Its high yield savings and checking accounts offer competitive rates to help you grow your money.
31. Skyward Credit Union
Skyward Credit Union was chartered in 1941. It offers a share savings account with competitive rates, an aim higher checking account with no monthly fees or minimum balance requirements, affordable mortgage and home equity loans.
It also offers online banking, a variety of insurance products, and access to over 30,000 surcharge-free ATMs. Like most credit unions require membership, so does this one. To become a member, join the Kansas Aviation Museum.
32. San Diego County Credit Union
San Diego County Credit Union has been around since 1938 and has over 430,000 credit union members. It’s considered the largest locally owned financial intuition in San Diego.
As a member, you can enjoy a free checking account, secured and unsecured credit cards, a wide range of account options with no service fees, and access to over 30,000 ATMs without ATM fees. To join San Diego County Credit Union, become a member of the Financial Fitness Association.
33. Bellco Credit Union
Bellco Credit Union is a Denver-based credit union that opened its doors in 1936. You can join it even if you don’t live in Colorado as long as you donate at least $10 to the Bellco Foundation, pay a one-time $5 membership fee, and deposit at least $25 in a savings account.
Once you do, you’ll have access to several noteworthy products, like the Boost Interest Checking account, which offers a competitive interest rate, the Premier Money Market Account, and two, no-fee credit cards.
34. Bethpage Federal Credit Union
Bethpage Federal Credit Union was founded in 1941 and currently has over 30 branches across Long Island and New York City. It has a reputation for competitive rates on it money market accounts and certificates of deposit (CDs).
The credit union also offers three checking accounts, a few savings accounts, retirement planning services, IRAs, insurance, and more. You don’t have to live in New York to join if you open a $5 savings account. As a member, you may meet with credit union staff virtually and bank on the go with a handy mobile app.
35. First South Financial Credit Union
First South Financial Credit Union opened its doors in 1957 to serve those on the Millington base. Since then, it has become of the safest financial institutions in the U.S., as stated by independent rating agencies. While the credit union has locations throughout Tennessee and Mississippi, its online banking services make it a suitable option if you live elsewhere.
Like other credit unions, it offers a full suite of checking, savings, CDs, and IRA accounts. To join, become a member of the Courage Thru Cancer Association, which supports St. Jude Children’s Research Hospital.
36. Dow Credit Union
Dow Credit Union was founded in 1937 in Midland, Michigan. It provides numerous products, including checking and savings accounts, certificates of deposit (CDs), HSAs, deposit trust accounts, and loans.
Fortunately, you don’t have to work at Dow Chemical to take advantage of them. To join, make a $10 donation to the Dow Chemical Employees’ Credit Union Endowed Scholarship Fund.
37. Blue Federal Credit Union
Blue Federal Credit Union was chartered in 1951 as Warren Federal Credit Union. If you’re looking for a high-yield checking account, you’ll appreciate its Blue Extreme Checking Account with no minimum opening deposit or monthly service fees.
Other perks include a tiered membership rewards program and round-the-clock customer service. The easiest way to become a member is to donate $5 to the Blue Foundation and open a Membership Share Savings Account with $5.
38. Digital Federal Credit Union
Digital Federal Credit Union (DCU), based in Marlborough, Massachusetts, was established in 1979. Today, it is known for its comprehensive range of financial products that includes checking and savings accounts, auto loans, mortgages, personal loans, credit cards, and wealth management services.
Perhaps one of DCU’s standout features is its commitment to digital banking, offering robust online and mobile platforms that compete with larger, nationwide banks. This makes DCU a fitting choice for those who prefer online banking, no matter where they live.
Membership is open to those who are a part of participating organizations or live, work, worship, or attend school in eligible communities. If you don’t fit those criteria, you can still join by becoming a member of a participating nonprofit organization, such as Reach Out for Schools, which requires a nominal donation.
See also: Best Nationwide Credit Unions of 2023
Not all credit unions are created equal. Some have strict membership criteria, while others are more flexible. Before you join a credit union (or several credit unions) on this list, be sure to consider numerous factors.
You’ll want to look at eligibility requirements, branch location, monthly maintenance fees, accounts offered, interest rates, mobile banking, digital banking, reputation, and customer service. Best of luck as you explore the best credit unions and search for the perfect credit union.
Frequently Asked Questions
Can civilians join Navy Federal Credit Union?
Yes, civilians can join the Navy Federal Credit Union (NFCU), the largest credit union in the U.S. However, this is limited to immediate family members of service members in all branches of the armed forces. This broad eligibility criteria is one of the reasons why NFCU has grown to be the largest credit union in the country.
Can anyone join American Airlines Credit Union?
No, not anyone can join the American Airlines Credit Union. Membership is limited to those who work in the air transportation industry, including airlines, airports, and related businesses, as well as their family members. While this broadens the scope beyond just American Airlines employees, it still doesn’t include everyone.
PacWest has agreed to sell a roughly $2.6 billion portfolio of construction loans to real estate investment firm Kennedy-Wilson to bolster liquidity, the bank said in a filing Monday.
The deal is “consistent with [PacWest’s] previously announced strategy … to pursue strategic assets sales and focus on our core community banking business.”
The bank earlier this month spotlighted, among its options, moving a “$2.7 billion Lender Finance loan portfolio to held for sale in 1Q23.”
Under the deal, Kennedy-Wilson will buy the portfolio of 74 loans at a discounted price of nearly $2.4 billion with an aggregate principal balance of $2.6 billion. The firm also agreed to assume all of the loans’ future funding obligations.
The transaction also includes the selling of additional six real estate construction loans with an aggregate principal balance of nearly $363 million.
The deal is expected to close in multiple tranches during this year’s second and third quarters. Kennedy-Wilson will see a total investment between 2.5% and 5.0% of the purchase price and future funding obligations.
Beverly Hills, California-based PacWest has been under pressure following the collapse of Silicon Valley Bank and Signature Bank in mid-March, which prompted depositors to pull money from other midsize regional banks. PacWest stocks have seen sharp declines and have shed around three-quarters of their value since Dec. 31. Monday’s announcement pushed PacWest’s share price up 14%, the Financial Times reported.
The lender lost around $5 billion in deposits in the first quarter amid market turmoil, but it said it did not see any extraordinary deposit flows in late April, when another bank, First Republic, failed and was acquired by JPMorgan Chase.
As part of the deal, Kennedy-Wilson will deposit $20 million into a third-party escrow account that will be refunded fully to the company until it completes due diligence and plans to hire PacWest employees managing the loan portfolio.
Kennedy-Wilson focuses on multifamily and office properties and has $23 billion in assets under management from real estate it owns and through its investment management platform as of March 31 — up $5 billion from the end of 2020, according to Bloomberg.
Kennedy-Wilson announced in December that its real estate debt investment surpassed $3 billion in originations in just more than two years, the wire service reported.
PacWest reported a net loss of $1.21 billion in the first quarter, with $860 million in unrealized losses in its securities portfolio. The lender also designated investment bank Piper Sandler to help it explore strategic options, the Financial Times reported this month.
It also lined up $1.4 billion from a financing facility provided by Atlas SP Partners in April.
WASHINGTON — House Financial Services Committee lawmakers debated a number of bills in a Wednesday markup, as Republicans looked to limit some of the power of the Federal Reserve, and Democrats tempted their GOP counterparts with would-be bipartisan legislation.
Republicans put forward a number of measures that would curb the federal banking regulators powers, after what the GOP sees as a failure on the part of the Fed to supervise Silicon Valley Bank. The panel will not vote on the bills or their amendments until the debate is finished, which is likely to continue late into the evening.
Rep. Andy Barr, R-Ky., chairman of the Subcommittee on Financial Institutions and Monetary Policy, introduced a large package made up of five separate bills. The package would require documentation and implementation “guardrails” when the Fed invokes its emergency lending facilities, increase reporting requirements for the Federal Deposit Insurance Corp. in its receivership and resolution activities for Congress, as well as require the Financial Stability Oversight Council to disclose its analysis used to determine the cost of any proposal related to systemic financial risk.
“The recent bank runs and systemic instability reveal that the federal financial regulators are opaque and non-transparent to Congress and the American people, especially in emergencies, when the stability of the U.S. financial system is under threat,” Barr said. “There is a clear need for sunshine on those regulators, and enhanced accountability and transparency when their failures are really responsible.”
One of the bills would also codify that the heads of banking agencies testify semi-annually in the House and Senate. Currently, only the chairman of the Fed is required to do so, and that the Treasury Secretary is required to testify annually.
Yet another of the bills would also mandate that the vice chairman for supervision, a position currently held by Michael Barr, have experience working in or supervising banking organizations. Barr does not have that experience.
Democrats opposed the package. Rep. Maxine Waters, D-Calif., the ranking member of the committee, said that the package would “hamstring regulators’ efforts to respond to and resolve due to bank failures.”
“Specifically, this bill would make it harder to properly invoke a systemic risk exception, limit the effectiveness of the Feds emergency lending authorities and to top it all off, the bill includes an unscrupulous political attack on the current vice chair of supervision that makes him ineligible to serve in his current role,” she said.
Waters said that the bill would slash the funding of the Financial Stability Oversight Council and the Office of Financial Research, and gut the ability of FSOC to receive advice from a panel of experts on climate change “in response to extreme MAGA Republicans’ ridiculous claim that climate change and diversity is what cause the banks to collapse.”
“Nothing in this bill would address the root causes of the recent bank failures,” she said. “Instead this bill meddles unnecessarily with regulators’ tools and flexibility to respond in an emergency despite the fact that regulators have gone out of their way to make confidential supervisory information available.”
Democrats offered a number of amendments to Barr’s bill and others debated at the markup that Democrats hoped could garner bipartisan support. Some of those included pausing bonuses or other discretionary income should a bank leave open the position of chief risk officer, along with requiring that the vacancy of chief risk officer be made public, and closing what Waters said was a loophole in Dodd-Frank that allows some banks to evade the law’s enhanced prudential standards depending on whether it has a holding company.
“Let me just say that not only have I found a loophole, this is an opportunity for you to get at those regulators you’ve been complaining about all day,” she said. “Make them do their job. I would not only like to talk with you, but you indicated you’re going to be talking to a lot of people about a lot of things. I just want to legislate and I want to legislate with you.”
Lawmakers came closest to agreeing on an amendment offered by Rep. Al Green, D-Tx., that he said would “clarify that it is the sense of Congress that our community banks, including rural banks, community development financial institutions and minority depository financial institutions did not cause the crisis, yet may have been harmed by the crisis and certainly shouldn’t have to pay for the crisis.”
Barr eventually said he would agree to work with Green on the measure after committee Republicans couldn’t figure out whether the amendment would apply to banks with more than $5 billion in total consolidated assets, or simply more than $5 billion in uninsured deposits — the threshold outlined in a recent FDIC proposal — or if would only apply to the current special assessment or future ones as well.
“Mr Barr, I make an appeal to you to take advantage of this unique moment in time to bring the committee together so we can have unanimous consent to move forward with this piece of legislation,” Green said.
Federal Reserve Governor Christopher Waller said changes are coming to the central bank’s balance sheet, but don’t expect the expanded holdings to return to pre-pandemic levels.
During a question and answer session on Wednesday at an event hosted by the University of California, Santa Barbara, Waller said the Fed wants to reduce its holdings, but noted that the annual growth of the money supply limits how much reduction can take place.
“Our balance sheet grows about 7% a year from printing currency, issuing it off and … most of it goes outside the U.S.,” Waller said. “So, as our liabilities grow by 7%, our assets have to grow by 7%. So, we can’t even go back to where we were pre-pandemic because there’s been growth of roughly 7% for the last so many years.”
The Fed’s balance sheet totals more than $8.4 trillion, down more than $500 billion from its spring 2022 peak but more than double the level it was at before March 2020.
The Fed has been actively shrinking its holdings since last summer — allowing assets to expire without replacing them — as means for tightening monetary policy. Those efforts were disrupted, temporarily, amid a surge in emergency borrowing from the Fed in March after the failures of Silicon Valley Bank and Signature Bank, but they now appear to be on track.
Previously, Waller has said the Fed could stand to reduce its assets by $2 trillion without disrupting the banking system, noting that the Fed’s overnight reverse repurchase program has loaned out more than $2 trillion of securities nightly since last spring. The fact that those funds are ending up in the facility, he said, is proof that banks do not need them.
Along with reserves, currency and the overnight repo facility, the Fed’s liabilities include the Treasury’s general account — which is being drained to pay down debts amid the ongoing debt-ceiling debate — and a repo facility for other central banks. Assets include Treasuries, mortgage-backed securities and lending and credit facilities.
How much the balance sheet could – or should — shrink beyond $2 trillion remains an open question, Waller said. Ultimately, the Fed’s main concern is maintaining an “ample supply” of reserves, or cash available to banks, in the system because when reserves become scarce, banks compete for them and drive up prices, thus disrupting the Fed’s ability to set borrowing costs.
Waller said the Fed’s balance sheet is currently about 30% of gross domestic product, up from the mid-teens rate seen before the pandemic and about 7% before the subprime mortgage crisis. But, he said, there is no consensus view about what the appropriate ratio of balance sheet-to-GDP is.
“There is no economic theory that tells you how large a central bank’s balance sheet should be, there’s no theory about it at all,” he said during the event. “We’ve got some central banks — Switzerland — their central bank balance sheet is 100% or more of GDP.”
Waller noted that along with the winddown of the balance sheet, which is seeing about $95 billion of assets roll off each month, the Fed is considering some other changes to the composition of its balance sheet moving forward.
He said the Fed is looking to shift to shorter-dated securities, abandoning a post-2008 policy change toward long-dated assets made to drive down long-term interest rates. While that strategy was effective, Waller said, the end result was the Fed having to hold onto assets for longer than it had historically.
“The problem with long-duration assets is they’re long duration, once they’re on your balance sheet, you’ve got them for a long time,” he said. “Over time, we’re going to try to bring that maturity structure back down.”
He also noted that he’d like to see the Fed move away from purchasing mortgage-backed securities entirely because of their 30-year maturity.
“I don’t really like that we have that asset, it’s a little too much concern for me,” he said. “But, hopefully, we, at some point, can kind of run those off and never get into the business of buying mortgage-backed securities again.”
Several market experts discussed these topics during the Mortgage Bankers Association (MBA) Secondary and Capital Markets Conference and Expo 2023 in New York.
The buyers’ side
Steven Abrahams, a senior managing director at Amherst Pierpont Securities, a broker-dealer owned by Santander, said that before the Global Financial Crisis, the market was dominated by investment portfolios looking for the risk and return of MBS assets.
However, after the crisis, the Fed entered the MBS market, and new regulations encouraged banks to hold quality liquid assets, including MBS.
“What we’re looking at now is the initial phase of exit of those two policy investors and the return of the market to marginal pricing by portfolios that are in the game basically to make money,” Abrahams explained. “That’s the easiest way to think about why spreads have widened the way they have.”
Byron Boston, CEO and co-chief investment officer at Dynex Capital, Inc., said that “levered returns are very attractive today” and there’s a “huge demand for income,” which will keep MBS attractive to money managers.
“A 30-year fixed rate mortgage is an unusual beast,” Boston said. “But because our government is involved with it, all of us as American citizens have the pleasure of having it.”
The sellers’ side
As affordability is still an issue, originations will decline and affect the supply of MBS, panelists said. The MBA estimates that volumes will decline from the $4 trillion level in 2020 and 2021 to less than $1.8 trillion this year.
According to Jeana Curro, head of agency MBS research at Bank of America, mortgage rates are still very high and people that have walked into very low mortgage rates during the pandemic “are kind of stuck in their homes.”
“We’re forecasting about $268 billion a year in [MBS] net issuance. Last year, it was about $535 billion,” Curro said.
The secondary market experts have not seen any disruptions caused by the sale of MBS securities once held by banks that collapsed.
The Federal Deposit Insurance Corporation(FDIC) decided in early April to sell the $114 billion in MBS it retained after seizing control of failed regional banks Signature Bank and Silicon Valley Bank (SVB). BlackRock Financial Market Advisory has led the sales process.
Curro said that BlackRock has been smart in its executing a strategy that keep the size of offerings low and consistent while also actively communicating with the market.
“The bigger disruption that you want to be concerned about, beyond the mortgage market, is that we’re doing this within a global system that has an enormous amount of risk attached to it,” Boston said. “If you have another risk event that takes place on top of this – while we’re trying to clear the market of the banking problem – now we have a bigger issue.”
Boston added: “These are really good assets. It’s just a matter of what price ultimately will come about.”
Regarding the Fed’s MBS portfolio, Curro said that “We think what’s more likely to happen, and this is the Bank of America economist’s view, is that by the end of the first quarter of 2024, QT [quantitative tightening] is going to end and at that point, what they’re likely to do is take the mortgage pay downs and reinvest them into Treasuries.”
Did the movie “The Big Short” go right over your head? Does Nasdaq sound more like a foreign country than a stock market index? When you hear about bear markets and bull markets, do you envision adorable cartoon mammals browsing for fresh produce at a local farmers market?
You’re not alone.
The stock market can be confusing, and if you’re not a financial wizard in the Wall Street inner circle, you might be tempted not to bother with stock and options trading at all. But you’d be missing out.
That’s where apps like Robinhood come in. In this Robinhood review, we’ll discuss how Penny Hoarders can go from novice traders to expert stock market gurus, no matter how much or how little they have to invest.
What Is Robinhood?
Robinhood offers a unique brokerage account with commission-free investing from your smartphone. Robinhood has been around for the better part of a decade — the company launched April 18, 2013. Its two founders, Vladimir Tenev and Baiju Bhatt, met at Stanford University as roommates and eventually moved to New York City to build finance companies.
Upon seeing firsthand how Wall Street insiders and powerhouse firms paid almost nothing when trading stocks while average Americans had to pay a commission fee for every trade, they instead headed to California to develop a financial product that allowed everyone to trade easily and affordably.
The resulting financial product, of course, was Robinhood. The company today is headquartered in Menlo Park, California.
Robinhood has not been without its challenges. It’s famous for serious outages during market surges in 2020 and its role in the early 2021 market chaos related to the Reddit forum called r/wallstreetbets, where it restricted member access to securities like GameStop, Nokia and AMC. More recently, Robinhood laid off 23% of its staff, just one example of the massive tech industry layoffs in 2022, and also has been in the news for questionable trades.
However, Robinhood’s overall mission to make stock market trading accessible for everyone is admirable, and it is one of many investment and trading tools that seeks to put power back in consumers’ hands to elevate the financial status of the average American.
That’s a product that, even with its flaws, we can get behind.
What Tradable Securities Does Robinhood Offer?
The Robinhood platform is a great solution for free(!) trading of stocks, options, ETFs (exchange-traded funds) and ADRs (American Depositary Receipts), as well as cryptocurrency trading. The trading platform requires no minimum balance, offers fractional shares and includes plenty of educational resources. While Robinhood is most known for trading stocks and crypto, you can also use it for cash management.
Robinhood does not, however, offer access to mutual funds and bonds.
In 2021, Robinhood began to offer IPO access, meaning investors could purchase shares of stock in new companies at the IPO price before they go public. And in 2022, it introduced individual retirement accounts, or IRAs.
What Can You Trade on Robinhood?
U.S. exchange-listed stocks
U.S. exchange-listed ETFs
Options contracts for U.S. exchange-listed stocks and ETFs
ADRs for more than 650 globally listed companies
What Can’t You Trade on Robinhood?
Select OTC equities
Stocks that trade on foreign exchanges
New York registry shares
Chinese securities affected by the Nov. 2020 executive order
How to Get Started with Robinhood
To sign up with a Robinhood brokerage account, simply visit the website and press the black “sign up” button.
Hot Tip: Robinhood is currently offering one free fractional share upon signup. There are 20 fractional shares available to choose from. To generate its 20 offers, Robinhood chose the two largest S&P 500 companies within each of the top 10 sectors based on market cap.
To open an account with Robinhood, you have to meet a few individual requirements:
You must be 18 or older.
You need a valid Social Security Number (Note: You may not use a Taxpayer Identification Number).
You must be a legal U.S. citizen, U.S. permanent resident or have a valid U.S. visa and have an address in the 50 states or Puerto Rico (exceptions made for members of the U.S. military stationed outside the country).
The Robinhood trading platform is accessible via the web or app (iOS and Android).
The process of activating your account can take some time. You’ll start by submitting an application. While Robinhood reviews the application, you can queue one deposit to fund your account, but you won’t be able to use that money to make trades until account approval.
Typically, Robinhood will take a few days to either approve your application or request more information. If they request more information or documentation, be prepared to allow five to seven days for review.
How Much Does Robinhood Cost?
Trading with Robinhood is free. That’s the whole reason its founders launched the company: free stock trading for regular people. That means you won’t pay commissions on equity trades or options trades. However, you could wind up having to pay account transfer fees, wire fees, check fees and live broker fees, among others.
In addition, Robinhood Gold allows you to trade on margin at a 7.75% annual rate (11.75% for non-Gold members). It also allows you to make bigger deposits with faster fund access. This fee for the margin account is $5 per month.
Robinhood Gold, Explained
Margin trading means trading with borrowed money. If you invest in a bad stock and lose money on the investment, you’ll owe that money back.
For example, say you borrow $500 to invest in a stock worth $500. But that stock plummets to $100. You will still owe the remaining $400 back to Robinhood. That’s what makes margin trading a little too risky for novice traders.
Not only that, but if you borrow more than $1,000 to trade on margin, you’ll owe 7.75% yearly interest on that borrowed money above that $1,000.
Because Robinhood is targeted at new investors — and margin trading is a risky practice that can break even the savviest stock market gurus — we recommend that you invest with your own money, and make sure it’s money that, if lost, will not financially ruin you.
In fact, one of our biggest stock trading tips for beginners is to stay away from margin trading.
So How Else Does Robinhood Make Money?
If Robinhood is commission-free and not everyone uses Robinhood Gold, how does Robinhood make money off you? Robinhood spells this out transparently on its website:
Rebates from market makers and trading venues: Robinhood has developed relationships with market makers and trading venues that pay Robinhood rebates for directing orders to those makers and venues. In the industry, this is known as payment for order flow (PFOF).
Stock loans: Robinhood can loan stocks held in your account to traders and hedge funds for short selling. Robinhood gets to keep the money it makes from this; you as the investor do not share in the wealth.
Income from cash: If you have idle cash sitting uninvested but haven’t moved it into a cash management account, Robinhood earns interest on that cash.
Cash management account: Every time you use the debit card for your cash management account, Sutton Bank (the card issuer) earns a fee, which it shares with Robinhood.
Robinhood Gold: Robinhood makes money off every Gold subscription, both from the monthly fee and from margin interest.
Robinhood Review: Key Features
In this section, we will break down some of the hallmark features of Robinhood.
Robinhood: At a Glance
ETFs ADRs; crypto
Mobile app rating
4.2 on App Store
4 on Google Play
Talk to a live agent 24 hours a day, 7 days a week
Other key features
Free stock at sign-up
Robinhood’s schtick has long been that it offers commission-free trading. That means you will spend $0 for stock trading and $0 for options trading. ETFs also are commission-free.
This was the original mission of the founders, but in the time since launching their revolutionary idea, some of the bigger, traditional players, like Fidelity and Charles Schwab, have latched onto the same idea — and are backed by a better customer support system and a better-supported platform.
That has meant the Robinhood trading platform has had to find new ways to differentiate, like cryptocurrency and fractional shares. More on these below.
No Account Minimum
Of course, you will need to put money in your account to invest, but Robinhood does not have an account minimum, nor does it charge you for having a low or zero balance. And with fractional shares being an option, you can get started investing with as little as a dollar in your account.
Note: To purchase a security on margin (through Robinhood Gold), you need to have at least $2,000 in your account. This is not a Robinhood requirement but rather a regulation set by the Financial Industry Regulatory Authority (FINRA).
Cryptocurrency is still a foreign concept to many investors, but just because something is new and scary (also, it’s been around since 2009, so it’s hardly new anymore) doesn’t mean you shouldn’t invest. Not all brokers allow you to buy and sell cryptocurrency, but Robinhood offers support for multiple cryptocurrencies, including Bitcoin, Dogecoin and Ethereum, with Robinhood Crypto (open 24/7).
In keeping with the whole “Robinhood is free” theme, Robinhood charges 0% for crypto exchanges. Some competitors charge up to 4%.
Not only does Robinhood offer free trades on stocks, options, ETFs and ADRs, it also has no account fees, inactivity fees or ACH transfer fees. Robinhood Gold, as mentioned, currently costs $5 a month.
Robinhood was created in the heart of Silicon Valley in Menlo Park, so, unsurprisingly, its mobile app is streamlined and easy to use. At the time of writing, the Robinhood app had 4.2 stars in the App Store based on more than 4 million reviews.
Its website, too, is streamlined. It doesn’t have a lot of extras, which is great if you are a novice trader. A more senior investor may find the site lacking, however.
While Robinhood offers customer support, this seems to be the biggest issue raised by members. Customer review sites often are littered with complaints that customer service is virtually nonexistent, especially pre- and post-market.
In an effort to improve its relatively low-rated customer support options, Robinhood rolled out a new customer service feature in 2021. This allows customers to request a call back, 24/7. Robinhood promises an agent should call within 30 minutes.
No Mutual Funds and Bonds
While commission-free stocks, options, ETFs and even crypto are a big pro of Robinhood, its lack of mutual funds and bonds can be frustrating for traders who want to diversify. As far as retirement accounts go, mutual funds are a key part of a retirement investment strategy.
True to its goal of making growing financial wealth more accessible to average Americans, Robinhood released fractional share options in late 2019. This means, if you can’t afford an expensive stock valued at, say, $1,000, you could instead buy a fraction of the stock, maybe $100 worth of it, or even just $10.
Right now, Robinhood allows you to buy as small as one-millionth of a share. Just like full shares, trading of fractional shares can be done in real time and is commission-free.
Another tool that Robinhood has introduced in recent years is recurring investments, which is a nice pairing with a fractional share investment strategy. For example, if Company X’s stock hovers around $200, you can set up a recurring investment in a fractional share at $25/week. Within roughly eight weeks, you could own a full share.
Most brokers structure recurring investments as buying by the share, which typically leaves your account funded with some uninvested cash. But Robinhood’s recurring investments are structured as buying by a dollar amount, which makes the best use of all your invested cash.
New in 2021, Robinhood gave customers access to purchase stocks in upcoming IPOs (initial public offerings) at the IPO price. No minimum account balances or special status requirements are necessary.
Cash Management Account
Another cool feature of Robinhood is the associated cash management account. You can have your paycheck deposited here, use it to pay bills and deposit checks, and, of course, fund your account. Like a proper bank account, this account gives you access to more than 75,000 fee-free ATMs (pretty much everywhere Mastercard is accepted) and comes with a debit card. And the best part: It earns 1.5% APY (4.65% APY for Gold members). For reference, the FDIC says the average interest rate for a savings account is 0.33% APY. And because the account is operated through a network of banks, you’ll get more than the typical $250,000 FDIC insurance; instead, the account is insured up to $1.25 million.
A lot of now-outdated Robinhood reviews mention the lack of educational resources. We couldn’t find anything to be less true of Robinhood. Perhaps in response to some of those reviews, Robinhood has stepped up its game, with plenty of online resources on the website as well as a daily financial newsletter called Robinhood Snacks. Robinhood markets it as a “3-minute newsletter with fresh takes on the financial news.”
Serious investors keep up with this kinds of news. It may not have the same appeal as celebrity gossip, but it will help you make wise decisions investments decisions.
Robinhood makes it easy to access news from Reuters, Cheddar, WSJ Markets, etc. Upgrading to Robinhood Gold gets you access to Morningstar, Nasdaq and Nasdaq Totalview Level 2 Market Data.
What Customers Are Saying About Robinhood
Because of Robinhood’s role in the recent GameStop market chaos and following layoffs in 2022, many angry investors and emboldened Redditors spoke their minds online, meaning Robinhood’s current ranking on sites like the Better Business Bureau (BBB) and Google Play is suffering. This is more a reflection of reviewers’ overall criticisms of capitalism, hedge fund managers and the 1% than it is on Robinhood, which, if you take a step back, is really trying to help the average investor.
Pros and Cons of Robinhood
There’s a lot to love about Robinhood, especially if you are a new trader. More experienced traders may prefer a different approach to trading, however. Weigh these pros and cons before deciding on a Robinhood brokerage account.
The educational content is great if you are new to the stock market and want to learn the language.
The cash management account makes it easy to fund your investments and earns a decent APY.
You can strategize by combining fractional shares and recurring investments to diversify your assets and minimize uninvested cash, no matter how much you have to invest.
The commission-free trading and no account minimum truly make this accessible to anyone who wants to invest.
Robinhood gives you the option of investing in cryptocurrency and access to IPOs.
The mobile app and online trading platform are known for their ease of use.
There are no account or trading fees, nor are there account inactivity or ACH transfer fees
Robinhood is running a promotion wherein you get free fractional share upon signing up.
The role Robinhood played in limiting investments in squeeze stocks (like GameStop) in early 2021 brought the original mission of the company into question. The 2022 layoffs didn’t help.
Customer support is lacking, especially compared to larger brokers. Robinhood customers complain that customer service is especially challenging pre- and post-market.
Robinhood lacks mutual funds and bonds.
By not charging investors commission, Robinhood instead makes money through the payment for order flow, a common standard among online brokers. Some critics say this is a conflict of interest.
Are There Alternatives to Robinhood?
If you want to stay away from major players like TD Ameritrade and Charles Schwab, Robinhood is arguably the most popular trading tool.
Its most notable competitor is Webull. Both Robinhood and Webull have their advantages; it truly comes down to your personal preferences. But Robinhood and Webull aren’t your only options. In fact, we’ve rounded up the best investment apps currently offered; choosing the right app depends on your own specific needs and investment strategy.
Frequently Asked Questions (FAQs) About Robinhood
Still have questions about opening a Robinhood account? We’ve provided answers to some of the questions our readers are most commonly asking.
Is Robinhood Safe?
Yes, Robinhood is a safe platform for investing. Robinhood is a member of the SIPC (Securities Investor Protection Corporation), meaning your funds are insured up to $500,000. Robinhood also is regulated by the Securities and Exchange Commission (SEC).
Is Robinhood a Brokerage Account?
Yes, Robinhood offers a brokerage account as its key offering, but you can also open a cash management account with Robinhood.
Does Robinhood Pay Dividends?
Robinhood processes your dividends automatically, crediting cash to your account by default.
Is Robinhood Gold Worth It?
Most investors will be fine with Robinhood’s free investing accounts. Being a Robinhood Gold member is ideal for margin trading, but we don’t recommend this unless you are a more seasoned investor.
Timothy Moore covers banking and investing for The Penny Hoarder from his home base in Cincinnati. He has worked in editing and graphic design for a marketing agency, a global research firm and a major print publication. He covers a variety of other topics, including insurance, taxes, retirement and budgeting and has worked in the field since 2012. Freelancer Lauren Richardson contributed to this post.
Editor’s Note: This story was written byLauren Toms from partner site MoneyCrashers.
If you’ve been following the news this year, you might have heard about bank runs: Silicon Valley Bank, Signature Bank and First Republic in the U.S. and Credit Suisse internationally. And it’s understandable if you’re spooked.
A bank run happens when many — if not most — of a bank’s customers try to withdraw their money all at once, either because they’re worried the bank might go out of business or they’ve heard rumors about the bank’s financial health. Bank runs can be very stressful for both the bank and its customers and can have big effects on the economy as a whole.
Fortunately, there are things you can do to protect your money now so a bank run doesn’t ruin your day or your net worth.
Keep your money in a federally insured bank
One of the best ways to protect your money during uncertain times is to keep it in a federally insured bank. That means your deposits are insured up to $250,000 per depositor by the Federal Deposit Insurance Corporation (aka FDIC) or National Credit Union Administration (for credit unions).
If the bank fails, you won’t lose your money so long as you don’t have more than the insured amount in all your accounts with that bank.
To find out if your bank is federally insured, you can look for the FDIC or NCUA sign at your bank or credit union or ask a representative. You can also check the FDIC’s online database, BankFind, to verify if your bank is insured.
Don’t make assumptions. Some banks are uninsured, so it’s important to do your research and ensure your money is protected. Some banks or credit unions may also have private insurance. But it’s not backed by the U.S. government and is subject to the rules of the bank’s underwriter.
In addition to providing insurance for your deposits, using a federally insured bank also comes with other benefits. For example, federally insured banks must comply with certain regulations that protect consumers and promote stability in the financial system. Theoretically, that means that your money is more secure and less likely to be at risk in the event of a bank failure.
Diversify your wealth
Diversifying across different banks and credit unions is an important step to protect your money during uncertain times. That means spreading your money across different FDIC- and NCUA-insured institutions, with no more than $250,000 in each account.
That serves two purposes. One, the more banks you have, the more likely you are to have at least one unaffected by bank runs. They tend to spread, meaning that if one bank starts to fail people start worrying about others, which results in a run on others.
Two, it ensures that if the worst does happen and the bank becomes insolvent, you have a better shot of having at least one bank remain unscathed — meaning you still have money in at least one account to keep paying bills and living life.
And diversification doesn’t just apply to the rich and powerful. Even if you only have a few thousand dollars in the bank, keep it in at least two different institutions. Otherwise, you could temporarily lose access to all your cash between the moment the bank stops processing withdrawals and the moment the FDIC steps in — which can take a few days.
For example, maybe keep half in a longstanding bank like Chase and the other in a neobank like Chime (which importantly has no connection to Chase). By diversifying across different banks, you reduce the risk of losing access to all your money at once.
Stay informed and be prepared
Staying informed about your bank’s financial health is a key part of protecting your money during uncertain times. Regularly check your bank’s financial statements and reports, which are usually available online or in-branch. These reports can give you insight into your bank’s financial performance and stability.
Another way to stay informed is to pay attention to the news and any announcements your bank makes. That can help you stay up to date on any changes or developments that may affect your bank’s stability. But if you hear any rumors or concerns about your bank’s financial health, it’s important to verify them before taking any action.
In addition to staying informed, it’s important to be prepared in case of a bank run. That means creating a plan to protect your money and ensure you have access to funds when you need them.
One way to do that is to keep a small amount of emergency cash on hand at all times. How much you keep depends on what you think you might need, how big an emergency you’re planning for, and whether you have a safe place to keep it.
Some people, especially those with several banks, may just want a few hundred dollars on hand in case there’s an immediate issue. Others may want an entire month’s worth of money in case the worst happens.
But neither of those is a good idea if you don’t have a safe place to store it. Technically, you could use a safe deposit box. But bank branches might close if the bank goes under, severing your access to those funds.
In lieu of that, think of a safe place in your home where you can keep it away from the prying eyes of houseguests and burglars alike. Ideally, it would be inside a fireproof, waterproof safe in case of natural disaster.
Keep calm and don’t panic
During a bank run, it’s natural to feel scared and uncertain. However, panicking can actually make the situation worse and put you at greater financial risk.
One danger of panicking is that you may withdraw too much money too quickly, leaving you without enough funds to cover your expenses and causing any automatic payments to bounce. Additionally, withdrawing large amounts of money can contribute to the bank’s instability and potentially make the situation worse for everyone involved.
To stay calm and make rational decisions during uncertain times, go back to your plan — and maybe even have a backup plan in case it’s worse than you thought or happens faster than you predicted.
One way to stay calm is to focus on the things you can control, such as your own finances and your own actions. That means avoiding rumors and speculation, and instead relying on verifiable facts and information.
Another way to stay calm is to remember the importance of having a long-term financial plan. By focusing on your goals and priorities, you can avoid making hasty decisions.
Bank runs can be a scary and uncertain time for both banks and their customers. However, by taking proactive steps to protect your money, you can minimize your risk and safeguard your finances.
By taking action now, you can protect yourself and ensure you have access to funds when you need them. Remember, it’s always better to be safe than sorry when it comes to your money.
If you’re as determined as we are to avoid reading any more than you need to about the debt ceiling, then the Fed is pretty much the only game in town for rate watchers this week. S&P PMI on Tuesday and PCE prices on Friday are the week’s only two potential market movers on the scheduled data front.
Other than that, we’re at the mercy of Fed speakers and perhaps to Wednesday’s Fed minutes to help the market refine its understanding of how firmly the Fed is prepared to stick to notion of remaining at a terminal rate through 2023 and well into 2024 (or possibly even hiking again in June).
There’s still quite a ways to go before getting back to Fed Funds Rate expectations seen just before the Silicon Valley Bank failure. The follow chart shows the implied yield for the December Fed meeting, per Fed Funds Futures.
The week begins on a data-free note today, but we already have several Fed speakers out with hawkish comments, keeping the upward pressure on rates across the board.
Since its inception in June 2017, Zelle’s instant payment service has exploded in popularity. It has established itself as one of the most widely used methods of money transfer in the United States.
Zelle, a digital payment network, is housed under the umbrella of Early Warning Services, LLC (EWS). EWS is a private financial services company jointly owned by some of the largest names in banking. These include Bank of America, Capital One, JPMorgan Chase, PNC Bank, Truist, U.S. Bank, and Wells Fargo.
How does Zelle work?
Zelle users can quickly send money to other registered Zelle users for free. Anyone can download the Zelle app. However, if your bank or credit union partners with Zelle, you can enroll through your bank’s mobile banking app or website.
To send money via Zelle, all you need is the recipient’s phone number or email address. Once you’ve confirmed the payment, they will receive a text message or email with a link to accept it.
There are currently more than 1,190 banks that use Zelle in the U.S. Below is the full list.
Full Listing of Banks That Use Zelle (A-Z)
Banks Starting With # or A
1st Bank of Sea Isle City
1st Century Bank
1st Colonial Community Bank
1st National Bank
1st Source Bank
1st State Bank
1st Trust Bank
Albany Bank & Trust
Alden State Bank
Algonquin State Bank
Allied First Bank
Altamaha Bank and Trust
Amalgamated Bank of Chicago
Amalgamated Bank (NY)
Amarillo National Bank
Ambler Savings Bank
American Bank and Trust
American Bank of Missouri
American Bank, N.A.
American Commercial Bank Trust
American Community Bank NY
American Community Bank Trust
American First National Bank
American Investors Bank
American National Bank & Trust
American National Bank of MN
American National Bank of TX
American Savings Bank
American State Bank and Trust
AMG National Trust Bank
Anderson Brothers Bank
Andrew Johnson Bank
Apple Creek Banking Company
Arizona Bank & Trust
Armed Forces Bank
Arthur State Bank
Associated Bank N.A.
Atlantic Capital Bank
Atlantic Union Bank
Banks Starting With B
Banks Starting With C
Banks Starting With D
DL Evans Bank Mobile
Dairy State Bank
Dallas Capital Bank, NA
Desjardins Bank N.A
Dewitt Savings Bank
Dime Community Bank
Dogwood State Bank
Dollar Bank, FSB
Dubuque Bank & Trust
Banks Starting With E
East West Bank
Eastern Colorado Bank
Eastern Michigan Bank
Edmonton State Bank
Embassy Bank For Lehigh Valley
Embassy National Bank
Empire State Bank
Englewood Bank & Trust
Enterprise Bank & Trust
Enterprise Bank & Trust Co.
Enterprise Bank of SC
Ephrata National Bank
ESSA BANK & TRUST
Eureka Savings Bank
Exchange Bank (CA)
Exchange Bank of NE Missouri
Excite Mobile Banking
Banks Starting With F
Banks Starting With G
Gate City Bank
Gateway First Bank
Geo D. Warthen Bank
Georgia Banking Company
Georgia Community Bank
German American Bank
Gibsland Bank & Trust
Glens Falls National Bank
Glenwood State Bank
Golden Valley Bank
Gorham Savings Bank
Grand Ridge National Bank
Great Plains National Bank
Great Plains State Bank
Greater Community Bank
Greenville Savings Bank
Grove Bank & Trust
Guaranty Bank – MS
Guaranty Bank & Trust
Guaranty Bank (SFC)
Gulf Capital Bank
Guthrie County State Bank
Banks Starting With H
Habib American Bank
Haddon Savings Bank
Happy State Bank
Harrison County Bank
Heartland Bank (NE)
Hendricks County Bank
Heritage Bank (KY)
Heritage Bank MN
Heritage Bank of Commerce
Heritage Bank of Schaumburg
Heritage Community Bank
Heritage Community CreditUnion
Heritage Southeast Bank
Hickory Point Bank and Trust
Hinsdale Bank and Trust
Home Federal Bank of TN
Home National Bank
Home Savings Bank
Home State Bank
Home State Bank, IL
Home Trust & Savings Bank
Homeland Community Bank
Hoyne Savings Bank
Huntingdon Valley Bank
Huron Community Bank
Banks Starting With I
Idaho Trust Bank
Illinois Bank & Trust
Independence Bank – Montana
Integrity Bank for Business VA
International Finance Bank
Iowa State Bank
Iowa Trust and Savings Bank
Iron Workers Bank
Iroquois Federal Savings
Israel Discount Bank of NY
Banks Starting With J
Jersey Shore State Bank
John Marshall Bank
Jonesburg State Bank
Banks Starting With K
Kalamazoo County State Bank
Karnes County National Bank
Katahdin Trust Company
KEB Hana Bank USA
Kennebunk Savings Bank
Kingston National Bank
Banks Starting With L
Lafayette State Bank
Lake City Bank
Lake Forest Bank
Lake Shore Savings
Lakeside Bank Chicago
Lamar National Bank
Landmark National Bank
Laona State Bank
Lea County State Bank
Ledyard National Bank
Lee Bank Mobile Banking
Legacy National Bank
Level One Bank
Liberty Bank for Savings
Liberty Capital Bank
Liberty National Bank
Liberty National Bank (OH)
Liberty Savings Bank
Lisle Savings Bank
Llano National Bank
Logansport Savings Bank
Lone Star National Bank
Lone Star State Bank of WT
Longview Bank & Trust
Louisiana National Bank
Lowry State Bank
Loyal Trust Bank
Lubbock National Bank
Lumbee Guaranty Bank
Luther Burbank Savings
Lyons National Bank
Banks Starting With M
M AND P BANK
M C Bank
Machias Savings Bank
Magnolia State Bank
Main Street Bank
Malvern National Bank
Marion Center Bank
Marquette Savings Bank
Mars Bank Mobile Banking
Marthas Vineyard Bank
Maspeth Federal Savings
McHenry Savings Bank
McIntosh County Bank
Meade County Bank
Mediapolis Savings Bank
Mercer County State Bank
Merchants & Farmers Bank Green
Merchants Bank of Indiana
Merchants National Bank
Meredith Village Savings Bank
Merrimack County Savings Bank
Metro City Bank
Metropolitan Commercial Bank
Mid America Bank
Mid America Bank – Kansas
Mid Penn Bank
Middletown Valley Bank
Midland States Bank
Midwest Bank – Minnesota
Midwest Community Bank
Minnesota Bank & Trust
Monson Savings Bank
Montecito Bank & Trust
Montgomery Bank Mobile Banking
Monticello Banking Company
Mound City Bank
Mountain Valley Bank
Mountain View Bank of Commerce
Banks Starting With N
National Bank of Arizona
National Bank of Blacksburg
National Bank of Indianapolis
National Capital Bank
Nebraska State Bank & Trust Co
Neighborhood National Bank
Nokoosa Port Edwards Bank
Nevada State Bank
New Frontier Bank
New Mexico Bank & Trust
New Millennium Bank
New York Community Bank
Newtown Savings Bank
Nicolet National Bank
NobleBank & Trust
North Dallas Bank & Trust Co
North Shore Bank, FSB
North Star Bank
North State Bank
NorthEast Community Bank
NorthSide Community Bank
Northumberland National Bank
Northwest Bank & Trust Co
Northwest Bank (PA)
Northwestern Bank (IA)
Norway Savings Bank
Banks Starting With O
Oakworth Capital Bank
Ohio State Bank
Old Dominion National Bank
Old Missouri Bank
Old National Bank
Old Plank Trail Bank
Old Point National Bank
Old Second Bank
One Florida Bank
Opportunity Bank of Montana
Orange Bank & Trust Company
Osgood State Bank
Ozarks Federal Savings & Loan
Banks Starting With P
Pacific Alliance Bank
Pacific City Bank
Pacific Premier Bank
Pacific West Bank
Park National Bank
Park Ridge Community Bank
Patterson State Bank
Penn Community Bank
Peoples Bank & Trust Co
Peoples Bank (IN & IL)
Peoples Bank (TX)
Peoples Bank (WA)
Peoples Bank IA
Peoples Bank of Alabama
Peoples Bank of East Tennessee
Peoples Bank of Altenburg
Peoples Bank of Graceville
Peoples Bank of Kankakee City
Peoples Bank of Kentucky
Peoples Bank of Paris Texas
Peoples National Bank
Peoples State Bank (WI)
Peoples State Bank Plainview
Peoples State Bank, Hville
Peoples Trust Company
Persons Banking Company
Peru Federal Savings Bank
Peshtigo National Bank
Philo Exchange Bank
Phoenixville Federal B&T
Piedmont Federal Savings Bank
Pinnacle Bank (CA)
Pinnacle Bank (GA)
Pinnacle Bank Texas
Pinnacle Bank Wyoming
Pinnacle Financial Partners
Pioneer Bank (VA)
Pioneer Bank MN
Piscataqua Savings Bank
Pittsfield Cooperative Bank
Planters Bank Mobile Banking
Platte Valley Bank NE
Platte Valley Bank WY
Plus International Bank
Poca Valley Bank
Points West Community Bank
Port Washington State Bank
Prairie Community Bank
Premier Bank of the South
Premier Valley Bank
Provident Bank (CA)
Banks Starting With Q
Quad City Bank & Trust
Quail Creek Bank
Quaint Oak Bank
Banks Starting With R
Red River Bank
Redwood Capital Bank
Reliance Bank (PA)
Republic Bank of Chicago
Riddell National Bank
Ridgewood Savings Bank
River City Bank
River City Bank (KY)
Roanoke Rapids Savings Bank
Rockland Savings Bank
Rocky Mountain Bank
Round Top State Bank
Royal Business Bank
Banks Starting With S
Sabine State Bank and Trust
Salem Five Cents Savings Bank
San Luis Valley Federal Bank
Sandhills State Bank
Sandy Spring Bank
Sanibel Captiva Community Bank
Santa Cruz County Bank
Savings Bank of Walpole
Sawyer Savings Bank
Schuyler Savings Bank
Scottsdale Community Bank
SECURITY BANK (OK)
Security Bank Laurel NE
Security Federal Bank
Security First Bank
Security National Bank IA
Security National Bank of SD
Security Savings Bank
Security State Bank – Wyoming
Shore United Bank
Silicon Valley Bank
Skyline National Bank
SNB Bank, N.A.
South GA Banking Co
South Shore Bank
South Story Bank & Trust
Southern Bank and Trust Co
Southern First Bank
Southern Independent Bank
Southern Michigan Bank and Trust
Southwest Missouri Bank
Southwestern National Bank
Spratt Savings Bank
Spring Bank Brookfield WI
Springs Valley Bank & Trust Co
St. Ansgar State Bank
St. Charles Bank
State Bank Financial
State Bank of Cross Plains
State Bank of Southern Utah
State Bank of the Lakes
Stephenson National B&T
Stockman Bank of Montana
Summit Community Bank
Sundance State Bank
Sunflower Bank, N.A.
Susquehanna Community Bank
Banks Starting With T
TBK Bank, SSB
TC Federal Bank
TD Bank N.A.
Territorial Savings Bank
Texas Bank and Trust Company
Texan Bank NA
Texas Capital Bank
Texas First Bank
Texas National Bank RGV
Texas National- Jacksonville
Texas Regional Bank
Texas Security Bank
The Andover Bank
The Bank & Trust ssb
The Bank of Elk River
The Bank of Hemet
The Bank of Missouri
The Bank of New Glarus
The Bank of Princeton
The Bank of Southside VA
The Bank of Tampa
The Bank of Tescott
The Berkshire Bank
The Callaway Bank
The Citizens Bank
The Citizens Bank-Enterprise
The Citizens National bank KS
The Cornerstone Bank
The Dart Bank
The Dime Bank
The Farmers and Merchants Bank
The Farmers Bank
The Farmers Bank of Appomattox
The Federal Savings Bk
The Fidelity Bank (NC)
The First National Bank of LI
The Grant County Bank
The Gratz Bank FKA Linkbank
The Hamler State Bank
The Harbor Bank of Maryland
The Marblehead Bank
The Milford Bank
The MINT National Bank
The National Bank of Texas
The Neffs National Bank
The Peoples Bank
The Peoples Bank-Gambier OH
The Peoples State Bank
The Piedmont Bank
THE SAVINGS BANK
The State Bank
The State Bank Group
The Tri-County Bank
The Union Bank Co.
Third Coast Bank SSB
Thomaston Savings Bank
Thomasville National Bank
Town and Country Bank
Tradition Capital Bank
Tri City National Bank
Troy Bank and Trust
Twin Valley Bank
Banks Starting With U
U.S. Century Bank
Ulster Savings Bank
Union Bank & Trust
Union Bank Monticello, AR
Union Savings Bank
Union State Bank
United Bank & Trust
United Bank (AR)
United Bank of MI
United Business Bank
United Community Bank
United Community Bank, LA
United Cumberland Bank
United Security Bank
United Fidelity Bank
United Prairie Bank
United Southern Bank
Unity Bank WI
Unity National Bank
Universal City Studios
Univest Bank and Trust Co.
US Metro Bank
USAA Federal Savings Bank
Banks Starting With V
Vectra Bank Colorado
Veritex Community Bank
Village Bank & Trust
Village Bank (VA)
Vinton County National Bank
Virginia National Bank
Banks Starting With W
Walpole Co-operative Bank
Washington Savings Bank
Washington Savings Bank Lowell
Waterford Bank, N.A.
Wauchula State Bank
Waumandee State Bank
Wayne Bank (PA & NY)
WCF Financial Bank
Webster Bank, former SNB sites
Wells Fargo Bank
West Alabama Bank
West Gate Bank
West Point Bank
West Shore Bank
West Texas National Bank
Western Commerce Bank
Western State Bank (KS)
Western States Bank
Westmoreland Federal Savings
Willamette Valley Bank
Wilson Bank & Trust
William Penn Bank
Winchester Savings Bank
Windsor Federal Savings
Winnsboro State Bank (WSB)
Winter Hill Bank (WHB)
Winter Park National Bank
Wisconsin Bank & Trust
Wood & Huston Bank
Woodford State Bank
Woodlands National Bank
Woori America Bank
Wrentham Cooperative Bank
Wyoming Bank & Trust
Wyoming Community Bank
Banks Starting With Y
Yakima Federal Savings
Yampa Valley Bank
Banks Starting With Z
Frequently Asked Questions
How do you receive money from Zelle?
If someone sends you money via Zelle, you’ll receive an email or text about their payment. Once you do, click on the link in the email or text. Then, download the Zelle app in the Apple App Store or Google Play if you haven’t already.
Click, “get started” and enter your email address or phone number, depending on how the funds were sent to you. Select “continue” and find your bank. As soon as you add your billing address on the next screen and click “continue,” you’ll be able to receive the transfer and any other transfers in the future.
What are the pros and cons of Zelle?
Just like any other digital payment provider, Zelle comes with pros and cons you should consider, including:
No fees to send or receive money
Available to customers at almost 10,000 U.S. banks and credit unions
Quick transfers, often within minutes
Chance to earn interest on money kept in checking and savings accounts connected to Zelle
Convenience of no contactless payments
Can’t cancel a payment after you send it if the recipient is already signed up with Zelle
Inability to link Zelle to a credit card
May require a smartphone
No chance to maintain a cash balance
Only for U.S. customers
Is there a fee for using Zelle?
Zelle doesn’t charge fees to send or receive money. But it’s a good idea to contact your bank or credit union to find out whether any additional fees may apply.
Is Zelle safe?
Since Zelle was created by banks and uses data encryption, it’s safe in most cases, especially when you compare it to alternative options like Venmo and Cash App. Despite this, Zelle doesn’t offer fraud protection for authorized payments.
This means if you use Zelle to make an online purchase, there’s not much you can do if you never receive the item. To avoid all safety concerns, only use Zelle to pay people you know and trust.
What’s the difference between Zelle, PayPal, and Venmo?
PayPal and Venmo are digital payment providers, which are similar to Zelle. However, unlike Zelle and Venmo, PayPal allows you to send and receive payments internationally. Many online retailers use PayPal as well.
Venmo is unique in that it’s a combination of a digital wallet and social media as you can comment with emojis when you send and receive payments. Zelle is not a digital wallet because you can only use it to transfer money from one account to another. While Zelle is generally free to use, PayPal and Venmo do charge fees in some situations.